Old Mutual Plans To Launch New Affordable Housing Fund In Kenya
By Estate Cloud - over 2 years ago - Kenya
South Africa-based Old Mutual Alternative Investments (OMAI) is set to launch a new pan-African affordable housing fund towards the end of 2021.
Old Mutual joint CEO Paul Boynton said that the fund would be targeting to raise between $300Mn - $500Mn.
He said affordable housing can remove the burden from fiscally stretched African governments adding that the fund could use economies of scale to achieve a compelling price point.
According to the African Report, OMAI has completed preparations to launch the new fund in Kenya which has a housing shortfall of 2 million units.
Boynton added that the OMAI fund may also decide to invest across sub-Saharan Africa, with the likely exclusion of South Africa.
OMAI’s plan involves the construction of new housing and conversion of existing structures for residential use, a strategy the firm has already implemented in South African cities Johannesburg and Cape Town.
The company will sell or rent residential housing in the new fund. The firm currently holds assets worth about $3.4bn under management in private equity and infrastructure investments which include Pulse Urban Properties, Crystal Park and CUF Properties in South Africa.